Will AVAX Price Surge 40% After Breaking $37 Resistance?

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  • Avalanche (AVAX) price was trading near $36.31, just below the $37 resistance, at press time.
  • Stochastic RSI shows AVAX at a neutral 52.69, indicating balanced market conditions.
  • Bull Bear Power (BBP) is slightly positive at 0.14, suggesting minimal bullish control.

Recent data indicates that AVAX price is trading around a major resistance level at $37. The cryptocurrency is currently trading at around $36.20, Zan important resistance level. Traders are paying attention to a breakout above this level that could create large price action.

Current Trading Dynamics of AVAX

Notably, Avalanche price has consolidated near the $37 mark, which has drawn interest from investors and traders. This is a resistance level which AVAX has not been able to overcome in the past.

Ali Martinez, a crypto analyst, highlighted that If the crypto can trade above this level, it could be the beginning of a bullish run. This potential breakout has attracted the market’s attention as it may be the beginning of an upward price trend.

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Source: X

Technical Indicators and Market Sentiment

On the technical analysis side, the Stochastic Relative Strength Index (RSI), which is used in measuring the velocity and magnitude of directional price moves, is at 52.69. Therefore, this places AVAX in the neutral zone.

This means that the market is balanced and there are no overbought or oversold conditions in the market. Such neutrality in the Stochastic RSI often suggests the possibility of further movement and as such, the subsequent phase of trading becomes critical for market observers.

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Source: TradingView

Besides the Stochastic RSI, the Bull Bear Power (BBP) is 0.14 as of now. Even with this figure being slightly positive, it represents a very small potential for a bullish momentum.

This metric compares the daily high and low with the exponential moving average to determine the power of buyers over sellers and offers a look at the market’s current state.

The slight bullish sentiment that BBP revealed could be an indication that the buyers are slowly starting to take control, paving the way for a price breakout.

Potential Market Movements and Trading Strategies

More so, AVAX price may rise by 40% post resistance-break as per historical data and technical analysis of past trading patterns.

Some traders may view this as a key resistance level because getting past it may mean that the positive outlook for the currency is correct and may encourage more buying.

On the other hand, if this resistance is not broken, AVAX may remain range-bound around the current levels or even fall back if the general market conditions deteriorate.

Hence, for investors and traders, the upcoming AVAX resistance may act as a trigger for critical actions. A break above $37 may be considered as a higher buy signal and a good entry point.

At press time, AVAX price is trading at $36.20, close to a critical resistance at $37. With a 24-hour gain of 2.75% and volume up by 54.22%, market sentiment appears bullish. The recent price surge suggests momentum might carry it beyond the resistance soon.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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